Mt. Gox set to begin cash repayments to creditors ‘shortly’ in 2023

Creditors of Mt. Gox, a Bitcoin exchange that ceased operations after losing 850,000 BTC in a 2014 hack, have reportedly received an email indicating forthcoming repayments.

On Nov. 21, Nobuaki Kobayashi, the trustee in charge of the Mt. Gox Bitcoin exchange’s estate, began issuing emails to rehabilitation creditors about the initiation of repayments, as reported by numerous sources on social media.

The email allegedly sent by Kobayashi indicates plans to begin the first round of cash repayments to creditors in 2023. The trustee is expected to extend these repayments into 2024, yet the precise schedule for individual rehabilitation creditors remains unspecified.

The trustee’s email also highlighted the complexity and diversity of the repayment process, noting, “due to the large number of rehabilitation creditors, the varying types of repayments, and the different preparation and processing times required, repayments will continue into 2024.”

Kobayashi noted that creditors can track the status of their repayments using the claim filing system.

On Nov. 22, alongside the emergence of social media reports, the Mt. Gox trustee made a public statement about the redemption of trust assets.

The official document revealed that the rehabilitation trustee had redeemed 7 billion Japanese yen (equivalent to $47 million) to finance the repayment of claims. Following this redemption, the total trust assets were reported to be approximately 8.8 billion JPY, or around $59 million.

This latest development seems to signify the commencement of repayments for everyone involved. In September, Mt. Gox pushed back the deadline for rehabilitation creditor repayments, moving it from Oct. 31, 2023, to Oct. 31, 2024.

Launched in 2010, the Tokyo-based platform quickly rose to prominence, becoming the world’s largest bitcoin exchange by 2013, handling 70% of global bitcoin transactions.

However, in early 2014, the platform ceased all withdrawals and halted trading. Subsequently, the website was taken down, and the company declared bankruptcy following the loss of over 800,000 bitcoins.

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